The Council for Insurance Ombudsmen recently revealed a lack of data regarding insurance companies' adherence to the awards granted in response to consumer complaints. In reply to an RTI query, the Council stated its inability to provide information on both fulfilled and pending awards.
Responsible for overseeing 17 Insurance Ombudsman offices across the nation, the Council's awards hold binding authority over insurers, but the office lacks the ability to seize insurer assets in cases of non-compliance. Industry insiders, however, argue that regulatory action can be taken against companies failing to comply.
Jeetendra Ghadge, an activist from Mumbai and a member of Young Whistleblowers Foundation initiated the RTI query and expressed concern over numerous individuals being unjustly denied legitimate insurance claims on fraudulent grounds. He questioned the purpose of approaching the ombudsman if insurance companies faced no consequences for non-compliance.
Ghadge recommended that the Insurance Regulatory and Development Authority of India (IRDAI) publish a comprehensive list of insurance companies failing to adhere to ombudsman awards and recommendations. This, he argued, would empower citizens to make informed decisions about their insurance needs. Interestingly, in response to Ghadge's RTI query, the IRDAI disclosed that no disciplinary action had been taken against any insurance company for non-compliance with Insurance Ombudsman awards or orders.
Коментарі